February 14, 2005
TO THE ADMINISTRATOR ADDRESSED:
Subject: Updated 2004-05 Summary of Finances
The revised 2004-05 Summary of Finances and other related reports
have been updated on our web site at
Please note the following information pertaining to these reports:
• Projected Student Counts - The DPE
column reflects the latest projection of end-of-year ADA and FTEs.
ADA was projected by applying last year’s ratio of end-of-year ADA
to PEIMS fall enrollment to this year’s PEIMS fall enrollment. All
other ADA and FTE counts were then estimated as a percentage of
the projected ADA, again using last year’s ratios. For compensatory
education enrollment, the DPE side has been updated
to reflect the district’s actual best six-month average of free
or reduced-price eligible students for the prior year. A report
indicating the monthly counts was also updated on our web site for
• Budgeted Tax Collections - M&O tax collections
budgeted for the 2004-05 school year as reported to PEIMS have been
used on both the LPE and DPE columns. For those districts participating
in the Instructional Facilities Allotment (IFA) program for a lease-purchase,
the dollar amount that represents the district’s share of the IFA
program has been subtracted from the budgeted M&O collections.
A report that details budgeted tax collection by fund and object
code and indicates the IFA amount subtracted is also updated on
our web site for your review. Please check these data carefully.
On all previous summaries, the total M&O tax collection amount
that was being used on both the LPE and DPE
columns was equal to the Tax Collection Limit for DTR used in Tier
II calculations. If the budgeted M&O collection amount (less the
IFA local share, if any) is less than the M&O tax collection amount
that was previously being used on the LPE side, the district’s Tier
II aid on the LPE side has been reduced as directed by Section 42.253
of the Texas Education Code. This reduction will have the effect of
lowering the district’s remaining monthly Foundation School Fund payments.
Property Value Adjustments - For those districts that are less than
K-12, the 2003 value has been adjusted for tuition costs, if applicable.
You will note that there is no funding available at this time for
adjustments of four percent declines in property values.
• Tier II Max Tax - A Revised Worksheet for Calculation
of Tax Collection report is updated as well. The DPE
column uses actual 2002-03 tax collections to derive the Tier II
DTR rate, whereas the LPE column uses an estimate
of 2002-03 tax collections. Therefore, the DPE
column reflects the district’s actual Tier II limit.
• Hold Harmless Additional State Aid - An Updated
Calculation of Hold Harmless State Aid for M&O Collections (and
for I&S Collections) report is also updated and the district’s
new allocation is updated on the DPE column for your review.
• Salary Transition Entitlement - A Revised Calculation
of Salary Transition Entitlement is also updated and the district’s
new allocation is updated on the DPE column. The
salary transition entitlement was recalculated for those districts
whose Tier II allotment changed. The FTE count
of teachers and full-time nurses, librarians, and counselors has
been updated to reflect the numbers of these staff that were reported
to PEIMS this past fall.
• Existing Debt Allotment - A Revised Calculation
of Existing Debt Allotment report is updated and the district’s
new allotment is updated on the DPE column for
your review. This report reflects the latest information available
relative to the district’s actual debt service payments for 2004-05
• Schedule of Payments - A report entitled Estimated
March Through August Payments will be posted in our web site in
March for your information. This report reflects the district’s
remaining monthly payments from the Foundation School Fund.
• Transportation Allocation - The district’s 2004-05
transportation allotment as calculated from the data submitted on
the 2003-04 Route Services Report is reflected on both LPE
and DPE of this SOF. If the district did not submit
the Route Services Report, the transportation allocation has been
set to zero.
• Additional Aid for School Employee Benefits
- Based on the latest information to the Division of State Funding,
a revised calculation of the Additional Aid for Employee Benefits
report is updated on DPE column as well.
• Projected Settle-up - Page 5 of the summary,
under the DPE column, indicates the projection
of what the end-of-year settle-up might be. If the Projected Balance
as of 8/31/05 is a negative amount, the district is projected to
be overpaid for the year. If the balance is a positive amount, the
district is projected to be underpaid for the year.
• Payment Ledger - The Foundation School Program
Ledger for the 2004-05 is on our web site for your review.
If you have any questions concerning these materials, please do not
hesitate to contact the Division of State Funding at (512) 463-9238.
Robert N. Jocius, Senior Director
Division of State Funding